Economics 172 Issues in African Economic Development

1. Economics 172Issues in African Economic Development Lecture 18 March 21, 2006

2. Outline: • Historical population density and political power in Africa (Herbst 2000) • Bates (2001) on agricultural marketing policies Economics 172

3. Table 1.1, 1990 population densities RegionDensity in 1900 (people/km2) Japan 118.2 Europe 62.9 China 45.6 South Asia 38.2 Sub-Saharan Africa 4.4 Latin America 3.7 • Why was population density so low in Africa? (i) Tropical disease; (ii) Low agricultural productivity; (iii) The slave trade Economics 172

4. Population density and politics in Africa • Low population density made it difficult to radiate political power over space • Exception: the highlands of East Africa (e.g., Rwanda) Economics 172

5. Population density and politics in Africa • Low population density made it difficult to radiate political power over space • Exception: the highlands of East Africa (e.g., Rwanda) • This picture begins to change in the 18th and 19th century, with the importation of millions of guns as part of the Slave Trade • Larger states emerge during this period – Sokoto Emirate in Nigeria, Zulu Empire in Southern Africa, Buganda in Uganda, Ashanti in Ghana. Other important pre-colonial states include Swahili-Omani Kingdom, Ethiopia, Liberia Economics 172

6. The rise of European colonialism • This process of political consolidation was short-circuited by European conquest in the late 1800s • Why did Europeans decide to conquer Africa, after being content for hundreds of years with trade? Economics 172

7. The rise of European colonialism • This process of political consolidation was short-circuited by European conquest in the late 1800s • Why did Europeans decide to conquer Africa, after being content for hundreds of years with trade? (1) The invention of quinine greatly reduced the threat of malaria for Europeans (2) The invention of the machine gun (the Maxim gun) greatly increased their relative military might Economics 172

8. European colonial institutions • Political institutions: “indirect rule” in British colonies Economics 172

9. European colonial institutions • Political institutions: “indirect rule” in British colonies • Economic institutions: forced labor, the “hut tax” Economics 172

10. European colonial institutions • Political institutions: “indirect rule” in British colonies • Economic institutions: forced labor, the “hut tax” Imperial PowerRoad density (km roads/km2 area) 19351963 British colonies 0.02 0.09 French colonies 0.01 0.04 Belgian Congo 0.02 0.07 South Africa 0.11 0.27 Economics 172

11. Outline: • Historical population density and political power in Africa (Herbst 2000) • Bates (2001) on agricultural marketing policies Economics 172

12. Agricultural marketing in colonial Africa • Agricultural marketing boards can in theory insure farmers against price fluctuations, allow the government to invest in new technologies, etc. Economics 172

13. Agricultural marketing in colonial Africa • Agricultural marketing boards can in theory insure farmers against price fluctuations, allow the government to invest in new technologies, etc. Economics 172

14. Agricultural marketing in colonial Africa • However, in practice in colonial Africa marketing board prices were set far below world prices, leading to a massive transfer of income from African farmers to European empires, particularly during WWII Economics 172

15. Agricultural marketing in colonial Africa • However, in practice in colonial Africa marketing board prices were set far below world prices, leading to a massive transfer of income from African farmers to European empires, particularly during WWII Economics 172

16. Whiteboard #1 Economics 172

17. Whiteboard #2 Economics 172

18. Whiteboard #3 Economics 172

19. Whiteboard #4 Economics 172

20. Whiteboard #5 Economics 172

21. Map of Africa Economics 172